Every business keeps a balance sheet as a way to track its financial position. The balance sheet lists all liabilities, or debts, and assets. The expenses associated with maintaining a balance sheet are part of a business's overhead, or ongoing operating costs, these costs can't be included in some specific overhead calculations.

Types of Expenses

Balance sheet expenses can take several different forms. Most businesses don't rely on paper balance sheets where accountants list assets and liabilities, though this was once common practice. Instead, businesses purchase accounting software or use computer spreadsheets to track financial transactions and keep balance sheets up to date. Equipment costs, software licensing fees, and labor costs associated with maintaining balance sheets are all among balance sheet expenses.

Calculating Overhead

A business's overhead is a measure of costs not directly related to specific, revenue-generating activities. This broad category includes all expenses related to maintaining the balance sheet, along with executive and administrative salaries, office space and supplies, utilities, and marketing expenses. While these costs don't relate directly to business activities that serve customers or produce goods, items such as the balance sheet are vital to running a sustainable business and complying with financial reporting requirements.

Exceptions

Businesses that deal in manufacturing differentiate between manufacturing and nonmanufacturing overhead. Balance sheet expenses can't be included in manufacturing overhead, which consists only of expenses directly related to the manufacturing process. These include manufacturing labor, raw materials, and costs associated with machines, tools and manufacturing facilities. The process of dividing overhead costs allows business leaders to use manufacturing overhead figures to analyze only the portion of the business associated with production of goods.

Balance Sheet Data

A business's balance sheet includes multiple pieces of data, aside from overhead expenses, that are useful for calculating total overhead. For example, the lease that a company pays on its place of business is listed as a liability on the balance sheet, as are any loans that the business takes out to pay for supplies. Referring to the balance sheet is a useful first step in calculating overhead.